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S&V Weekly Newsletter Vol.3 No.32, August 14, 2017

This Newsletter is sponsored by SAFLIA

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Freight: Costs from Far East up 200% in 18 months

Durban (SA) – Freight rates from the Far East have almost doubled in a year and have increased by over 200% since February 2016, according to the spokeswoman for a forwarding company which works extensively with the footwear industry but did not want to be named.
       Figures released show average rates for a TEU (20 ft equivalent unit - i.e. a 20 ft container) from Shanghai or Ningbo to Durban or Cape Town had doubled from Feb 2016 to February this year.
       In August 2016, rates were as low as in the region of $700 to $850 per 20 Ft GP. August 2017 rates vary from $1325 to $1550, depending on the shipping line.
       The rates for 40 ft containers in the same period have risen by the same percentages and now range from $2365 to $2950.
       "This year, notifications from all the shipping lines of rate increases are sent on a monthly basis - what they term 'general rate restoration' - of about $200 per TEU. They say that shipping rates last year were very low, and that they had been running at a loss. This is indicated by ALL shipping lines."
       The turning point seemed to have been Hanjin Shipping declaring business rescue and then liquidated by a South Korean court in August/September 2016.
       "It's just the Far East that's been affected," she said. "Rates from India and Europe haven't been affected."
       Many importers might be unaware of the effect freight was having on rising costs out of China. "If you ship FoB, you certainly know what the freight costs, but if you're quoted CNF or CIF [Cost & Freight/Cost, Insurance & Freight], it's more difficult to know what portion of the price is freight."



Lesotho raises minimum wages

Maseru (Lesotho) – The Lesotho Government has raised its minimum wage rates. In Government Gazette Vol 62 No 43, dated July 21, it retrospectively raised minimum wages from April 1. Lesotho is actively seeking to attract footwear manufacturers to set up plants in the country, and promotes low labour rates as its principal advantage.
       For workers in the clothing, textile and leather manufacturing sector, the basic minimum wages, in Maloti, are below. The Loti is pegged to the SA Rand on a 1:1 basis.



China Premium Tex to run alongside ATF in November

Cape Town (SA) – China Premium Tex will again take place alongside the ATF Trade Exhibition (November 21-23, CTICC) this year. Says CCPIT TEX, ‘China Premium Tex aims to bring key industry decision makers and manufacturers together under one roof to promote quality products from China, discuss investment opportunities in the region and to encourage business opportunities between South Africa and China. The Chinese textile, clothing and footwear industries are gradually moving up the value chain by industrial upgrading and restructuring. We also encourage and support Chinese companies to invest in South Africa’.
       ATF and China Premium Tex will host a vast array of products from China and 12 other countries. Over 150 exhibitors will showcase  footwear, clothing, hosiery, fashion accessories, textiles, machinery and components. So, if you are looking for new suppliers or exploring new agency agreements, then make sure you visit the event in November. There is no entry fee, but pre-register online at - [LTE – leaders in trade exhibitions for more info, +27 (0)21 790 5849,]



They Said It

"If only Clive loved writing his articles as much as he loves his sheep … What a wonderful world this would be!!." - International School of Tanning Technology secretary/administrator Debbie Archer, tasked by us with ensuring that Dr Clive Jackson-Moss gets his articles to African Leather on time - a thankless task if ever there was one.

"By the way, I thought you would like to know that Clive, AKA my Boss, is already working on his excuse with regards to his next article." - Debbie again.




August 18-22: Podiatry Association of SA 11th Biennial Congress, The Maslow, Sandton.
October 14: Cobblers' Luncheon, Goodwood Sports Club, Cape Town. Voden Wearne, +27 (0)21 551 4032,
November 21-23: ATF Trade Exhibition, Cape Town International Convention Centre. Deidre Harte, +27 (0)21 790 5849,



Birthdays this week

15/08/19??: Bob McDonald, retired, formerly Budget Footwear [closed], Durban.
16/08/1961: Alan Hornby, Topline Agencies, Cape Town.
17/08/1939: Mike di Lembo, Villani Shoes, Johannesburg.
17/08/1945: Roger Benjamin, agent, Port Elizabeth.
17/08/1959: Berkly Lupton, Apeco, Johannesburg.
17/08/1972: Alistair Watt, Bresan Footwear, Pietermaritzburg.
18/08/19??: Robbie Blom, Leisure Holdings, Durban.
18/08/1930: Mohamed Haffejee, Capri Bag, Durban.
18/08/1971: Rooksana Moosa, Mozak Shoes, Amanzimtoti.
18/08/1961: Braam Pretorius, Watson Shoes, Great Brak River.
18/08/1958: Mike Wallace, agent, Cape Town.
19/08/1959: Luis de Freitas, Leather Leisure, Welkom.
19/08/1979: Suran Sukdav, Ornella Footwear, Durban.
20/08/1965: Craig Brouwer, Albatros Clothing & Promotional Gifts, Germiston.
20/08/1980: Nicholas Bryant, A Greenaways, Cape Town.


In Memoriam this week

15/08/2011: Geoffrey Leonard Keane-Murphy (b. 08/03/1927), consultant, Durban.
15/08/2011: Newton Wade (b. 16/06/1925), Panama Shoes [closed], Durban.
15/08/2015: MH Moosaji, Trendsetters, KwaDukuza.
16/08/1997: Ed Aubin, agent, Port Elizabeth.
16/08/2012: Margaret Jordaan (b. 15/01/1931), Centra-Cast, Durban.
17/08/2016: Alan Sykes (b.17/10/1945), Western Tanning [now Mossop Western Tanning] and Corium [closed], Wellington.
18/08/2016: Christian Meyer (b. 16/12/1936), Jack & Jill [closed], Port Elizabeth.
19/08/2002: Dick Ilsley (b.11/12/1921), BUSM [closed], Durban.
20/08/2016: Gordon Horsfield (b.), GW Cowie & Co, Durban.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.



ABSA Agri Trends 14/08: Hides & skins prices

The average bovine hide price over the past week was R14.08/kg green. Hide prices are determined by the average of RMAA and independent companies. The average price for Dorper skins was R38.99/skin and Merino was R92.75/skin.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
19/01 15.34 45.56 81.38
24/01 15.17 40.92 89.52
31/01 15.10 46.00 94.55
14/02 14.65 47.33 95.29
15/03 14.25 39.30 78.75
24/03 14.13 45.27 94.45
28/03 14.07 45.27 94.45
04/04 14.83 41.92 87.58
11/04 14.68 41.92 84.12
19/04 14.77 43.85 92.32
25/04 14.75 41.25 92.27
04/05 14.79 43.33 92.69
10/05 14.75 40.50 88.41
16/05 14.58 40.83 90.96
31/05 14.62 40.50 87.95
09/06 14.58 41.82 96.35
23/06 14.40 40.42 101.25
29/06 14.30 41.36 98.44
07/07 14.33 43.33 100.94
13/07 14.37 44.44 114.58
28/07 14.14 43.64 97.50
04/08 14.16 43.69 99.64


Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website:


Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505,

Next newsletter: August 21, 2017.

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